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S&P 500 snaps 8-day winning streak, Dow closes 200 points lower as bond yields rise: Live updates

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 20, 2023. 
Brendan Mcdermid | Reuters

The S&P 500 fell Thursday, ending an eight-day winning streak, as a sharp jump in yields rattled investors.

The benchmark index declined 0.81%, closing at 4,347.35, while the Nasdaq Composite lost 0.94% and settled at 13,521.45. The Dow Jones Industrial Average dropped 220.33 points, or 0.65%, to close at 33,891.94.

Stocks hit session lows after Federal Reserve Chair Jerome Powell indicated more work may need to be done to bring down inflation, although the recent slowdown in pace has been an encouraging sign for policymakers.

"The Federal Open Market Committee is committed to achieving a stance of monetary policy that is sufficiently restrictive to bring inflation down to 2 percent over time; we are not confident that we have achieved such a stance," he said in prepared remarks for an International Monetary Fund event.

The move lower in stocks coincided with an uptick in bond yields. A weak U.S. Treasury auction earlier in the session did not help the situation. The benchmark 10-year Treasury yield was up more than 12 basis points at 4.634%. The 30-year bond rate jumped about 11 basis points to 4.772%.

"Interest rate volatility is dominating the stock market," said State Street Global Advisors' Michael Arone. "That's what we've seen."

"I do think that we're set up for a kind of a positive conclusion to what's been a positive year," the chief investment strategist said. "But I do think that movements in interest rates will ultimately determine kind of where we head from here."

Disney rose 6.9% a day after reporting better-than-expected profit and expanding its cost-cutting plan, while Arm dipped 5.2% following its first quarterly report as a public company. MGM Resorts slipped 1.1% even after posting strong results and a new share buyback program.

Stocks are coming off a muted but momentous day on Wall Street. The S&P 500 and tech-heavy Nasdaq finished up about 0.1% each, notching their lengthiest stretch of positive sessions in two years. The Dow finished down by about 0.1%, snapping a seven-day run of gains.

For the week, the Dow has lost 0.5%, while the S&P 500 is on track to finish roughly 0.3% lower. The Nasdaq is the only major average in positive territory, on track for a 0.3% gain.

Small caps are sinking even further on Thursday

Small-cap indexes Russell 2000 and S&P Small Cap 600 sunk deeper into the red on Thursday, each losing nearly 1.5% while the broader market shed 0.8%. That suggests investors remain worried about broader macroeconomic conditions, as small caps are typically more sensitive to fears about an economic slowdown.

It's been a tough year for small cap companies too, with both indexes down 4% this week and year-to-date losses for the Russell and S&P Small Cap 600 reaching 4% and 4.8%, respectively. The S&P 500, on the other hand, has gained 13.2%.

On Thursday afternoon, Federal Reserve Chair Jerome Powell said he and his colleagues were encouraged by slowing inflation, but that they are not yet confident they have achieved their 2% inflation goal.

 — Pia Singh

Oil settles slightly higher after sell-off this week

Oil settled slightly higher on Thursday but still hovered at three-months lows after a sell-off this week triggered by worries that demand is softening.

Brent crude contracts for January edged up 47 cents, or .59%, to $80.01 per barrel, while West Texas Intermediate contracts for December ticked up 41 cents, or .54%, to $75.74 a barrel.

Oil markets sold off this week on declining Chinese exports and forecasts that the U.S. will consume less crude this year, while fears of a broader Middle East war have abated.

-- Spencer Kimball

Technology stocks boost S&P 500 this week

The S&P 500 has clinched on to its week-to-date gains, due in part from strong performance among some technology stocks.

The information technology and communication services sector have climbed 2.8% and 1%, respectively, since the start of the week. The tech-focused sectors are the only two of the 11 in the broad index on pace for gains this week. Meanwhile, the S&P 500 as a whole is on pace to finish the week just 0.2% higher.

Gen Digital led the information technology sector higher with a gain of more than 8% this week, followed by Nvidia, which has added more than 6%. Communication services has been aided in the week by rallies of more than 6% and 5% in Disney and Take-Two, respectively.

On the other hand, energy was the worst performing sector in the S&P 500 on the week, set to finish more than 3% lower. EQT has led the sector lower with a drop exceeding 11%.

— Alex Harring

Fed 'not confident' enough has been done to bring down inflation, Powell says

Fed Chair Jerome Powell said in a speech Thursday that the central bank thinks more may be needed to bring down inflation.

"The Federal Open Market Committee is committed to achieving a stance of monetary policy that is sufficiently restrictive to bring inflation down to 2 percent over time; we are not confident that we have achieved such a stance," he said in his prepared speech.

Stocks moved to their lows of the day following Powell's remarks.

— Jeff Cox, Fred Imbert

Stocks making the biggest moves midday

Check out the companies making headlines in midday trading.

  • Affirm — Affirm shares jumped 17% a day after the fintech company reported fiscal first-quarter revenue that topped expectations. Affirm posted $496.5 million in revenue, more than the $444.5 million consensus estimate, according to FactSet.
  • Virgin Galactic Holdings — Shares rallied more than 20% a day after the company announced its cost-savings initiative, which includes pausing spaceflight operations next year. The company also laid off about 18% of its workforce. Shares are down nearly 42% year to date.
  • Duolingo — Duolingo shares surged 17% a day after the education technology company hiked its forecast for the full year. Duolingo estimates revenue will come in at $525 million to $528 million in 2023, compared to earlier guidance of $510 million to $516 million. The company also raised its outlook for bookings for the year.

Read the full list here.

— Sarah Min

10-year Treasury yield rises after weak demand for bond auction

The 10-year U.S. Treasury yield jumped 11 basis points to 4.622% after the 30-year bond auction saw weak demand. The 2-year Treasury yield added roughly 4 basis points to 4.98%.

Yields and prices move in opposite directions. One basis point equals 0.01%.

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10-year U.S. Treasury yield

— Sarah Min

BlackRock appears to take first steps toward ether ETF

BlackRock appears to be preparing for an ether ETF, with the website for Delaware's Division of Corporations showing that an iShares Ethereum Trust was registered on Thursday.

A similar registration was made in June, about a week before the initial filing for a BlackRock bitcoin ETF. That fund has not yet been approved by regulators. BlackRock declined to comment on the matter.

Ether rose more than 5% on Thursday, topping $2,000 for the first time since April.

— Jesse Pound

TransDigm, Hilton among 13 S&P 500 names trading at fresh highs

TransDigm Group, Hilton Worldwide were among the 13 S&P 500 names trading at fresh highs on Thursday.

Aerospace and defense company TransDigm Group on Thursday posted fourth-quarter earnings and revenue that topped estimates. It posted adjusted per-share earnings of $8.03, greater than the consensus estimate of $7.55, according to FactSet. It issued revenue of $1.85 billion, slightly higher than the forecasted $1.84 billion.

TransDigm shares were higher by more than 9% in midday trading. Hilton shares were up by nearly 1%.

Here are some of the other S&P 500 names.